Korea-US Economic Chiefs Hold First Call... Hong "Expecting Results on 'OECD Digital Tax'"

Hong Nam-ki Deputy Prime Minister "Consensus Formed on Continuing Expansionary Fiscal and Monetary Policies"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is having a phone conversation with Janet Yellen, U.S. Secretary of the Treasury, at 8 a.m. on the 17th at the Government Seoul Office. (Photo by Ministry of Economy and Finance)

[Sejong=Asia Economy Reporter Son Sun-hee] On the 17th (Korean time), the economic heads of South Korea and the United States held their first phone call and agreed to strengthen economic and financial cooperation between the two countries. In particular, they reaffirmed their support for multilateralism and exchanged views on the 'digital tax' to be discussed at the Organisation for Economic Co-operation and Development (OECD).

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held a call with U.S. Treasury Secretary Janet Yellen at 8 a.m. at the Government Complex Seoul, and the Ministry of Economy and Finance stated that they agreed on the importance of the Korea-U.S. alliance and the need to strengthen financial and economic cooperation between the two countries in overcoming the COVID-19 crisis and responding to climate change.

This was the first direct bilateral communication between the two since Secretary Yellen took office in January. In the past, when Secretary Yellen served as President of the Federal Reserve Bank of San Francisco, Deputy Prime Minister Hong worked at the Korean Embassy in the U.S., establishing a connection.

During the call, Deputy Prime Minister Hong congratulated Secretary Yellen on her appointment and expressed expectations for her role in overcoming global economic and health crises. He also mentioned that since the Biden administration's key economic agenda and the Korean government's policy direction share significant common ground, there is great potential for cooperation.

Additionally, he proposed that South Korea and the U.S. strengthen their strategic cooperative relationship in areas such as ▲health and bio ▲climate change response ▲green and digital economy transition ▲advanced technology ▲and restoration of multilateralism.

In particular, Deputy Prime Minister Hong expressed support for the Biden administration's efforts to rebuild multilateralism, emphasizing the need to enhance cooperation through forums such as the Group of Twenty (G20) and OECD, and expressed expectations for tangible outcomes in areas like digital tax and climate change response.

Secretary Yellen recalled her visit to South Korea during the 2008 global financial crisis and highlighted the importance of the Korea-U.S. currency swap. She also highly praised the dynamism and resilience of the Korean economy and welcomed efforts to respond to climate change, especially the Green New Deal policy.

Furthermore, the Ministry of Economy and Finance reported that both sides agreed to maintain frequent communication and close cooperation on global issues, including those related to Iran.

Immediately after the call, Deputy Prime Minister Hong posted on his social media, saying, "While exchanging greetings with Secretary Yellen, the phrase 'Ilmyeon Yeogu (一面如舊 - meeting for the first time but feeling like old friends)' came to mind," and added, "We reached a consensus that expansionary fiscal and monetary policies should continue for the time being." He particularly noted, "This year, the OECD has the U.S. chairing the Council of Ministers and South Korea serving as a joint vice-chair, so I believe meaningful outcomes will be achieved in areas such as digital tax and climate change response."

Deputy Prime Minister Hong stated, "Today's call is significant in confirming the unwavering economic cooperation between the two countries amid growing global challenges such as increased volatility in international financial markets, overcoming the COVID-19 crisis, and responding to climate change," and added, "After the call with Secretary Yellen, we agreed to meet in person at the G20 Finance Ministers' Meeting or other occasions once the COVID-19 situation stabilizes."

This content was produced with the assistance of AI translation services.